Waller Gives Disinflation 'a Chance' as Inflation Trajectory Improves

Federal Reserve Governor Christopher Waller has expressed skepticism about raising interest rates this month. In a recent speech, he suggested that underlying inflation might be lower than current figures indicate.

Waller pointed to three-month core inflation, which has fallen steadily from 4.76% in February to 3.05% in July. He noted that while this is still above the Fed's 2% goal, it shows a positive trend.

The governor emphasized that his decision on interest rates will depend heavily on forthcoming employment and inflation readings. If August's inflation data shows a similar trajectory to previous months, he may favor keeping the federal funds rate at its current range of 3.5-3.75%.